North Korea ramps up ‘state of war’ claims

North Korean leader Kim Jong-un ... a statement attributed to all government bodies and institutions says that as of now, inter-Korea relations enter a state of war and all matters between the two Koreas will be handled according to wartime protocol. Photo: Reuters

North Korea has underlined its announcement that it is in a state of war with South Korea by warning it could shut down the Kaesong joint industrial complex.

The joint South-North venture has been providing the regime with crucial hard currency since 2004.

The facility was established as a symbol of cross-border cooperation and has managed to keep functioning despite repeated crises in inter-Korean relations.

But there are concerns that this time its operations could be affected by Pyongyang’s move on Wednesday to sever a military hotline used to monitor movement in and out of the zone.

North Korea issued a statement on Saturday saying it had formally entered a "state of war" with South Korea and warns that any provocation will swiftly escalate into a nuclear conflict.

The statement was attributed to all government bodies and institutions and said that as of now, inter-Korea relations had entered a state of war and all matters between the two Koreas would be handled according to wartime protocol.

It is the latest in a string of dire threats from Pyongyang that have been matched by tough warnings from South Korea and the United States, fuelling international concerns that the situation is spiralling out of control.

Saturday's statement warns that any military provocation near the North-South land or sea border would result "in a full-scale conflict and a nuclear war".

The United States says it takes North Korea’s announcement about a state of war seriously, but notes it follows a familiar pattern, while South Korea dismisses it as an old threat dressed in new clothing.

Australian Foreign Minister Bob Carr is urging nations to ensure embargoes on the supply of weapons, and nuclear materials to North Korea are enforced.

North Korea has announced it’s formally in a `state of war’ with South Korea, and ties with the South will be handled according to wartime protocol.

Senator Carr has condemned the latest threat by the North, and says Australia is considering further sanctions on North Korea.